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Australia’s government announced on Monday its intention to introduce legislation that would place digital payment services such as Apple Pay, Google Pay, and others under the same regulatory framework as credit cards and traditional payment methods. The move comes as a response to the growing popularity of digital wallets, which currently operate outside the scope of Australian payments law.
The upcoming legislation, scheduled to be introduced to parliament later this week, aims to extend the regulatory authority of the Reserve Bank of Australia to encompass new and emerging payment technologies. This initiative is part of a broader effort to modernize the country’s payments system and adapt it to the evolving needs of the economy.
Treasurer Jim Chalmers emphasized the importance of ensuring that the surge in digital payment usage contributes to fostering competition, innovation, and overall productivity across the entire economy. The legislation seeks to address the regulatory gaps associated with the rapid adoption of digital wallets, particularly among the younger demographic.
Recent data indicates a significant increase in digital wallet transactions, accounting for 35% of all card transactions in the June quarter, compared to 10% in early 2020. Notably, two-thirds of Australians aged between 18 and 29 now use mobile payments, marking a substantial rise from the pre-pandemic figure of less than 20%.
In addition to bringing digital payments under regulatory oversight, the proposed amendments will empower a relevant minister to subject a system or platform to special oversight in cases where it poses a risk of “national significance.”
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